DataBreaches.Net

Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report
Menu

As if a 20-Year Consent Order Wasn’t Enough Fun: FTC Brings First Monetary Settlement in Information Security Case

Posted on January 7, 2016 by Dissent

Adam H. Greene of Davis Wright Tremaine LLP discusses the consent order Henry Schein Practice Solutions signed to settle an FTC complaint, and finds it noteworthy for a number of reasons. One of the reasons, he writes, is that it is the first consent order in a data security case to involve a monetary penalty.

I don’t agree with framing it that way, though, as this really wasn’t about data security enforcement or Henry Schein simply offering “subpar encryption.” This case was about deceptive or misleading advertising, which brings it squarely under the non-security enforcement cases FTC has tackled. Had Henry Schein advertised its product by saying, “This product does not provide AES-256 encryption, but rather a weaker form of data security that does not fully comply, by itself, with HIPAA’s Security Rule,” could the FTC ever have gone after them? I don’t think so.

That issue aside for the moment, here’s another point Greene makes:

The FTC’s complaint alleged that the encryption that Schein’s software used “was not capable of helping dentists protect patient data, as required by HIPAA.” What the FTC’s complaint suggests that the HIPAA Security Rule requires arguably is not the case. The HIPAA Breach Notification Rule includes a breach notification safe harbor if data is encrypted in accordance with NIST standards; however, the Security Rule, in contrast, does not. Although it appears that a covered entity or business associate could comply with the HIPAA Security Rule even with encryption that does not meet NIST standards, this FTC settlement raises the prospect that the FTC may consider related claims of HIPAA compliance as deceptive if encryption does not meet NIST standards.

Greene also mentions some take-home messages, beginning with:

HIPAA compliance may not be enough.

Yes, I think the LabMD enforcement action has already demonstrated that the FTC will pursue cases that HHS/OCR might not pursue. Then too, even 7 years ago, they went after RiteAid and CVS on disposal of pharmacy records, even though both those entities fall under HIPAA.

Read Greene’s full article on Privacy & Security Law Blog.


Related:

  • North Country Healthcare responds to Stormous's claims of a breach
  • Gladney Adoption Center had serious data exposures in the past few months. What will they do to prevent more?
  • 70% of healthcare cyberattacks result in delayed patient care, report finds
  • Hackers Can Remotely Trigger the Brakes on American Trains and the Problem Has Been Ignored for Years
  • Back from the Brink: District Court Clears Air Regarding Individualized Damages Assessment in Data Breach Cases
  • Qilin Emerged as The Most Active Group, Exploiting Unpatched Fortinet Vulnerabilities
Category: Commentaries and Analyses

Post navigation

← ICO takes enforcement action against Alzheimer’s Society (UPDATED)
Sophos acquisition Cyberoam victim of cyber attack →

Now more than ever

"Stand with Ukraine:" above raised hands. The illustration is in blue and yellow, the colors of Ukraine's flag.

Search

Browse by Categories

Recent Posts

  • PowerSchool commits to strengthened breach measures following engagement with the Privacy Commissioner of Canada
  • Hungarian police arrest suspect in cyberattacks on independent media
  • Two more entities have folded after ransomware attacks
  • British institutions to be banned from paying ransoms to Russian hackers
  • Data breach feared after cyberattack on AMEOS hospitals in Germany
  • Microsoft Releases Urgent Patch for SharePoint RCE Flaw Exploited in Ongoing Cyber Attacks
  • Global hack on Microsoft product hits U.S., state agencies, researchers say
  • Inquiry launched after identities of SAS soldiers leaked in fresh data breach
  • UK sanctions Russian cyber spies accused of facilitating murders
  • Michigan ‘ATM jackpotting’: Florida men allegedly forced machines to dispense $107K

No, You Can’t Buy a Post or an Interview

This site does not accept sponsored posts or link-back arrangements. Inquiries about either are ignored.

And despite what some trolls may try to claim: DataBreaches has never accepted even one dime to interview or report on anyone. Nor will DataBreaches ever pay anyone for data or to interview them.

Want to Get Our RSS Feed?

Grab it here:

https://databreaches.net/feed/

RSS Recent Posts on PogoWasRight.org

  • British government reportedlu set to back down on secret iCloud backdoor after US pressure
  • Idaho agrees not to prosecute doctors for out-of-state abortion referrals
  • As companies race to add AI, terms of service changes are going to freak a lot of people out. Think twice before granting consent!
  • Uganda orders Google to register as a data-controller within 30 days after landmark privacy ruling
  • Meta investors, Zuckerberg reach settlement to end $8 billion trial over Facebook privacy violations
  • ICE is gaining access to trove of Medicaid records, adding new peril for immigrants
  • Microsoft can’t protect French data from US government access

Have a News Tip?

Email: Tips[at]DataBreaches.net

Signal: +1 516-776-7756

Contact Me

Email: info[at]databreaches.net

Mastodon: Infosec.Exchange/@PogoWasRight

Signal: +1 516-776-7756

DMCA Concern: dmca[at]databreaches.net
© 2009 – 2025 DataBreaches.net and DataBreaches LLC. All rights reserved.